Micron to rally more than 50 percent as the chip business is 'rapidly improving,' Citi says

Kai Pfaffenbach | Reuters

Citi Research initiated coverage of Micron Technology with a buy rating, saying demand for its memory chips is rising and the industry's oversupply issues are getting under control.

"Fundamentals of the DRAM industry are rapidly improving due to lower supply combined with stable to improving demand," analyst Christopher Danely wrote in a note to clients Wednesday.

"In addition, Micron is improving its execution and competitive position, which should lead to additional margin drivers."

Danely's Micron 12-month price target is $30, representing 57 percent upside from Tuesday's close.